Roommates in Your 20s: Building Financial Success

April 08, 2021

“Is having roommates worth it?”

Having privacy, time alone, and a place to think are essential. That’s why renters are constantly asking themselves the same question: “is having roommates worth it?”

We’ve all heard the stories. Someone gets sick of living with roommates and goes looking for a place of their own. At first, they’re delighted with their new freedom. What always follows is the shock of the price tag of living alone. As it turns out, having roommates in your 20s could set you up to never have roommates again! Is it worth it?

Save money

By far, one of the biggest reasons for living with roommates is that you’re guaranteed to save money. No matter what way you look at it, having roommates helps you share the cost of renting.

study by SmartAsset compared the average price of one-bedroom apartments and two-bedroom apartments in the US. Unsurprisingly, there’s a huge split. The biggest price increase is from one-bedroom to two-bedroom. In big cities such as San Francisco or New York, having a roommate could save you more than $1,000 each month. Even in other cities across the country, having a roommate will decrease your housing expense.

While you’ll save money on rent, there are a few other money-saving aspects of having roommates:

  • Share the responsibility of furnishing the place (which means less out of your pocket to buy items like lamps, couches, etc.).
  • Share the responsibility of fixing things and/or paying repair costs.
  • Have the opportunity to spend more time focused on other aspects of your life that help you save or make money.

The money you save by having roommates can be invested. Knowing how to invest isn’t always easy, but once you have the money, all that’s left to do is get started!

Friendships and Networking

Have you ever been part of a summer camp program, retreat, or group getaway? If so, you know what it’s like to experience the bonding that goes on. This social connection is what happens when you’re living in close quarters with those that you do everyday activities with.

In your 20s, this bonding can take a professional turn known as networking. Networking has never been more important, especially with the rapid rise of remote working. Having connections can help you secure working and be successful. These connections can open new doors, collaborate with you on projects, and help you problem-solve.

If you live alone in your 20s, you risk losing these benefits. Living in a shared space where you’re surrounded by diverse ideas, outlooks, beliefs, and approaches to problems can be professionally enriching. Moreover, living with good roommates often opens up opportunities to socialize, attend local events, and witness different cultures. The people you bond with early in your life can form the foundations of professional or personal opportunities later in life.

So, not only will having roommates give you a boost in your career, but it’ll also enhance your personal life. If that’s not convincing enough, a study conducted at Harvard concluded that shared-living can even improve your mental and physical health, which is especially important in a pandemic.

More Time To Focus on Career

Your 20s will be busy. This decade is the time of your life when you’re building for the future. You’re motivated, ambitious, and ready to take on the world.

But wait.

There’s rent to be paid, landlords to answer to, and repairs to be done – stressful. Unfortunately, the common issues of renting can get in your way. Overcoming this roadblock is as simple as enlisting help in the shape of roommates. Spreading out the responsibilities of being a renter means that you save on time and stress. With this extra time and headspace, you’re free to focus on the more important parts of life, such as your career, income, family, etc.

Learning More About Houses

Moving out on your own can be scary. It’s tempting to take the easier option by renting alone or staying near home. However, when things go wrong in your new house, you might find yourself calling a repair person or consulting your landlord for help. Naturally, when renting, it can be scary to attempt any repairs or even so much as tweak anything.

Often, we may even feel like we’re tiptoeing around our apartment – never really thinking of it as our own. As a result, we don’t learn anything about the structure of a house or how rental properties work. This lack of knowledge can be devastating later in life if you purchase your own home. In fact, in 2020, the average household spent $13,138 on repair fees alone. Naturally, being able to take care of some of these issues on your own would be a relief to your bank balance.

In co-living spaces, you have the chance to see the economic benefits of being a landlord up close. Conclusion

It’s normal to be hesitant about living with people you don’t know. However, if you know how to get the ball rolling, living with roommates can be an enriching experience, and it will help your bank account.

Saving money is essential early on in life. Having the money and time to pay off debt and save is important.

Giving up a small part of your freedom in your 20s is a small sacrifice to make when you stand to gain a lifetime of valuable experience and wealth. As young renters entering the rental market become increasingly aware of the benefits of having roommates, we expect to see more renters looking at living with roommates. After all, saving, networking, growing, and living all at once is just too good to pass up.

At PadSplit, we know how important it is to feel at ease with your future housemates. All PadSplit Members must pass a thorough background check and employment verification process to live in a PadSplit. Become a Member today, and start saving for your future.

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